Murdoch backs Brooks over phone-hacking allegations

The chairman of News Corporation, Rupert Murdoch has said the alleged phone hacking at the News of the World and payments from the newspaper to police are "deplorable and unacceptable".

But Murdoch's statement suggests that despite the escalating seriousness of the situation, he does not intend to fire Rebekah Brooks, chief executive of subsidiary News International, which publishes the News of the World.

Murdoch said he had "made clear that our company must fully and proactively cooperate with the police in all investigations and that is exactly what News International has been doing and will continue to do under Rebekah Brooks' leadership".

He added that News Corp has appointed Joel Klein, head of its education unit, "to provide important oversight and guidance" during an internal investigation, and non-executive director Viet Dinh is keeping News Corp's board "fully advised".

Former director of public prosecutions Lord Macdonald QC has also been appointed by News Corp. His job will be to advise News International on co-operating with the Scotland Yard investigation into payments to police by the News of the World.

Brooks has come under increasing pressure to resign over the last two days, as revelations about the behaviour of News International employees during her time as editor have hit the front pages.

In 2002, private investigator Glenn Mulcaire hacked into the voicemail of missing teenager Milly Dowler, who was murdered by Levi Bellfield near her home in Surrey.

Mulciare allegedly deleted messages in her inbox to free up space, leading the family and police to suspect that she was still alive.

The tabloid is also alleged to have hacked into the phones of the families of Holly Wells and Jessica Chapman, who were killed by Soham murderer Ian Huntley in 2002, and the phones of families of 7/7 victims in 2005.

Labour leader Ed Miliband this morning called for Brooks to take responsiblity and resign.

Speaking in prime minister's questions, Miliband said, in an apparent reference to David Cameron's friendship with Brooks: "I know that this is difficult for the prime minister, but will he join me in saying that she should take responsiblity?"

Cameron refused to do so, reiterating that it was for the police to investigate the matter and come to a conclusion about who was responsible.

Brooks said in an internal email to News International staff on Tuesday, that she was "sickened" by the allegations concerning Dowler but would not step down.

Murdoch's intervention at this stage could signal concern within News Corp that the escalating scandal will affect the company's bid to take full control of Sky.

The bid appeared to have the green light last week, with secretary of state Jeremy Hunt saying that he was "minded to accept" undertakings from News Corp about spinning off Sky News under a separate publicly limited company, Newco.

The bid is currently under consultation, but Hunt has increasingly faced calls to delay the process while the allegations levelled at the News of the World are investigated.

In prime minister's questions this morning, Miliband called on Cameron to delay the takeover to give "breathing space for legitimacy and the proper decision to be made".

In an emergency debate that followed, former Lib Dem leader Sir Menzies Campbell and former home secretary Jack Straw echoed Miliband's suggestion.

Image: Barry Batchelor/PA

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